Benefits for the Employee
How do Employee's Benefit from Salary Packaging?
- Pay Less Tax: An extensive proportion of the car expenses are taken from the employee's pre-tax income therefore reducing the amount of income tax they pay.
- Save on GST: An employer is able to claim back a sizable portion of the lease associated GST on behalf of the employee
- Fixed Payments: The lease payments are fixed for the duration of the lease. This allows the employee to avoid large annualised vehicle costs and allows more consistency in their monetary outgoings.
- End Of Lease Tax Free Profit: At the end of your lease, your employee can sell or trade in the vehicle for a profit, this profit is tax free. It is not subject to Capital Gains Tax.
- Convenience: The registration, CTP and Comprehensive Insurance is renewed for you automatically. Your fuel card is accepted at all service stations Australia-wide.